Tag: mortgage

Clean Title at Closing

For a home sale to close there should be a clean title.

A clean title means there are no standing claims against the property and that the owner has the full legal right to sell the property. The job of the title company is to do the necessary work to ensure that the title is clean and ready for a smooth transfer of ownership.

Sometimes it gets a little bumpy. Hidden claims against the home must be resolved for the sale to go through. Most are easily resolved while others can be challenging.

Here’s ar a few types of claims that title agencies see most often:

Mechanic’s Liens

A mechanic’s lien is typically placed on the property prior to a contractor doing work to improve the property. It covers the cost of materials, equipment, and labor associated with the project. When the job is completed and paid for, it’s the contractor’s responsibility to release the lien. If that doesn’t happen for any reason, it becomes an issue to be resolved prior to settlement.

Bankruptcy Liens

A bankruptcy filing connected to someone holding title to a property is another common problem we see. When the bankruptcy situation is resolved, the lien must also be addressed. From time to time, that doesn’t happen and it takes some effort from the title company to clear the title.

Child or Spousal Support Liens

When a lien is filed for delinquent child support or spousal support, it can still be connected to the title, waiting to be discovered, even generations later.

Delinquent Tax Liens, Fraud & Forgery

Similarly, liens related to unpaid or late tax returns can hold up the process if left unresolved. Fraud and forgery are also common in the event that one person on the title signs the name of another person on the title, typically a spouse.

The Bottom Line: These are just a few issues that can cost a sale. Having the best title agency examine the title on each property is in your best interest. At Title First Agency, we work with Realtors from the signing of a contract to the signing of the closing, ensuring that the transactions run smoothly and close on time.

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What is the MLS?

The real estate market is competitive, and the business is unique in that competitors must also cooperate with each other to ensure a successful transaction. MLS systems facilitate that cooperation. 

In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first MLS was born, based on a fundamental principle that’s unique to organized real estate: Help me sell my inventory and I’ll help you sell yours.

The Multiple Listing Service (MLS) is a tool that allows Realtors to work with other agents in their region, even if they work for competing agencies or brokerages. There are currently 700-800 regional MLS databases that are created and funded by local real estate professionals to facilitate property sales.

In most cases, MLS content is provided free of charge to the public by participating brokerages.  Some MLS data is not made public in order to ensure seller privacy or safety, such as seller contact information and home vacancy status. For this reason, it’s beneficial to work with a real estate professional who can help you navigate all information available on the MLS.

Your ability to search for the right home is arguably the most important step. Homebuyers and sellers are able to work closely with a trusted real estate professional of their choice while seeing the best outcomes for their real estate transactions. Without the MLS, many agencies would only showcase properties listed by their agents, severely limiting a homebuyer’s ability to search for all homes available in an area. The MLS, then, is a helpful tool for both homebuyers and sellers: It allows sellers the widest exposure in advertising their homes for sale while allowing buyers to search listings across many agencies or brokerages with ease.

Because agents and brokers pay membership to their local MLS, home sellers must work with an agent in order to have their property listed in the MLS. For Sale by Owner (FSBO) homes are not listed in the MLS. In addition to including standard information like square footage and photos, agents are also able to upload and download documents to the MLS, including seller disclosures and HOA regulations.

The Bottom Line: The MLS can help all parties involved in a real estate transaction by providing important information on homes for sale and getting those homes more exposure. However, it’s only accessible to real estate professionals, which is one of the many reasons why you should work with a real estate agent.

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Upgrades For Your Home That Will Save Money and Energy

Programmable Thermostats: Installing a programmable thermostat is one of the easiest ways to save energy, cut utility bills and to “green your home”. It’s suggested that you program and set your thermostat to 68 degrees in cold weather and 78 degrees in warm weather. Your HVAC system will only kick on when it reaches the designated temperatures in your house. You won’t have to think about adjusting the thermostat again; it does it all for you. The great news is that you can also expect to cut 3 to 5 percent off of your energy bill for every degree you set your thermostat below 68 in the winter and above 78 in the summer

Low-flow Plumbing Fixtures: Low-flow plumbing may not seem like a vital efficiency improvement. However, considering that homeowners use showers, faucets, and toilets multiple times every day, such an upgrade makes perfect sense.

The Environmental Protection Agency (EPA) puts the savings into perspective: if every American switched to low-flow fixtures, the country would collectively save about $8 billion on water costs per year. Those considering a switch to low-flow models should also consider the cost of heating water.

Because hot water must be warmed by electricity or natural gas, this adds to the energy bill. Low-flow equipment, especially showerheads, can reduce these extra energy costs because they use less hot water.

ENERGY STAR Appliances: Energy Star is a government-backed program for identifying products and appliances that meet certain energy efficiency standards. It was established in 1992 by the US Environmental Protection Agency as a way to promote products designed to use less energy and, hopefully, reduce costs for consumers.

By looking for the Energy Star label, you can ensure that the product you end up buying is more energy-efficient than most alternatives. This will save you money and help to lower your impact on the environment.

HVAC System Upgrades: If you are making frequent repairs on your HVAC system or enduring hot and cold spells in some of the rooms in your home, it’s probably time to replace the old inefficient system with an Energy Star-rated model. Expect to save about $200 per year on your utility bill, plus make your house far more comfortable.

You can also save money by dividing your heating and cooling system into multiple zones throughout your home. You’ll have to purchase more than one HVAC system, but in a larger home it makes sense, because you can control the temperatures of each zone individually, rather than from a single-point censor.

Landscaping:  New and appropriate landscaping can add to the energy efficiency of your home by providing shade in the summer months and insulation in the winter months. The EPA suggests planting trees that lose their leaves on the western and southern sides of your home to support this fact. In the summer, the trees will provide shade and block infrared radiation, keeping your house cooler. In the winter, when the trees lose their leaves, they will allow sunlight to reach the windows and warm your home. Planting native trees is best, because they will thrive in your city’s environment. Additionally, the plants and other landscaping can help support the environment and wildlife around your home. 

Tankless Water Heater: Before you take a shower do you wait awhile before the hot water comes out? All cold water went down the drain with your money. You’re also paying for your water heater to store, heat and reheat a supply of water in the tank. Enjoy instant hot water with a tankless water heater. Only the water that is needed as it passes through an electric coil is used. This eliminates excess energy costs and wasted energy associated with a tank, often saving a reported 50 percent on your energy bill 

The Bottom Line: Maintaining a home doesn’t have to be expensive. Since the recurring monthly costs aren’t fixed, there is a lot you can do to keep them down. These home improvement investments will upgrade your home, save you money and increase the value of your home.

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Title Insurance Myths

MYTH: You don’t need title insurance

Everyone needs title insurance. You may think you know the entire history of the house you’re purchasing, but it’s impossible to know everything. Title insurance protects your right to the property in the event that a previously unknown heir claims ownership of the property if it is later revealed that the “sellers” were not the rightful owners, or if liens against the property resurface. If you have an owner’s title insurance policy, you will not be responsible for paying any of the fees associated with protecting your right to the property, should these types of issues arise.

MYTH: New construction homes don’t need title insurance

Your home could be brand new, but the land on which the house is built isn’t. Chances are, the land had several previous owners before construction began. Buying property on such land opens you up to certain risks tied to ownership issues from previous owners.

Disputed wills, easements, and property liens are just a few of the issues common to land ownership. You could get caught in between the mess and end up losing your resources or, worse still, your new property as well. Title insurance is crucial even for a new home and should be among your list of priorities during the closing process.

MYTH: If no one challenges ownership, then the title policy is a waste

At the closing, when you purchase a title insurance policy, the closing company does the bulk of the work behind the scenes. The title company goes through many steps to make sure that everything is in place by that time, including conducting a comprehensive title search and identifying any potential issues. The team investigates the entire history of the property to ensure that you, the buyer, will be aware of any problems that will need to be addressed before closing. By the time the closing comes around, the title company has completed a great deal of research and legwork for you.

MYTH: Title insurance offers only minimal protection

When you purchase a home, you receive the “title” to the property. This title is your legal right to own it. Early in the home buying process, a title search is conducted to review the history of the property and uncover any issues that could limit your right to ownership. Even after the most meticulous search of public records, there can be hidden title defects, such as tax liens, forged signatures, claims by ex-spouses, and recording errors. These title defects can remain undiscovered for months or even years after you purchase the home.

MYTH: Title insurance is the same thing as homeowner’s insurance

Homeowners insurance protects you so you have the resources to pay for any damage that might occur to your property. Title insurance protects you from anyone else claiming your home is theirs or for some prior owner’s back taxes or encumbrances or any other real property dispute

Title First Agency: Dedicated to innovation and passionate about service, Title First Agency is your comprehensive, nationwide resource for title and real estate settlement services. Headquartered in Columbus, Ohio, Title First has branch offices throughout the Midwest and a robust virtual partner network throughout the country. Title First got its start in 1956 as an affiliate of a local law firm and has since emerged as one of the largest independent title agencies in the nation. Proudly servicing Realtors, lenders, builders, developers, law firms, buyers and sellers, Title First is equipped to serve your residential and commercial title and settlement needs.

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Get Your Offer Accepted

After searching online real estate sites, visiting open houses, and going on tours with your Realtor, you’ve finally found your dream home. If you’re willing to pay the asking price, the process should be simple, efficient, and worry-free. But often it is not. In a seller’s market, there are more home buyers than there are homes on the market. Your full-price offer will probably have some competition, so how what are some ways you can craft it so that it lands the perfect home?

A qualified and knowledgable Realtor is important. He will be your right-hand man, especially when it comes to finding the perfect home, making an offer, and negotiating the sale. For the buyer, this is a very emotional, stressful process so it is important to let the Realtor guide and advise you. If you have researched and hired the best Realtor, he will have plenty of years of experience and plenty of deals under his belt, thus being your primary source when you make that offer.

Get your pre-approval letter that will show readiness to buy a home. Not only does it solidify how much house you can afford to buy, but it also helps you determine if you should buy a house for the total amount you’ve qualified for. Plus, when you can supply a preapproval letter with your offer, the seller knows you are a serious candidate and are ready to get the deal done. In competitive real estate markets, it’s basically guaranteed that you need a preapproval letter to have a chance at catching the seller’s eye. 

Limit the contingencies. Contingent offers are common because they protect the buyer from the conditions of unexpected repairs, insufficient value, and title defects. If any of the conditions aren’t met, either party can consider the contract null and void. Contingencies typically benefit the buyer, and you can’t expect a seller to get multiple offers to accept unnecessary contingencies. With multiple offers on the table, they have more leverage. 

Your Realtor should let you know, however, that there are contingencies you absolutely do not want to remove such as a home inspection. After all, the last thing you want is to purchase a home that you can’t afford the repairs for. Limiting contingencies can make your offer more appealing, but make sure you don’t give up too much. Again, your Realtor will be your guide on strategy and approach.

Offer earnest money, also known as a good faith deposit, to put down prior to closing. Not always required but a good idea to offer it to show the seller you’re serious. When a buyer and seller enter a purchase agreement, the seller takes their home off the market. If the buyer backs out and the seller needs to relist their home, it can be very costly and they might have missed out on more serious buyers. 

Earnest money protects the seller in case the buyer backs out of the agreement. Typically, it’s around one to three percent of the sale price and is held in an escrow account until the deal is finalized. If the deal goes through, the earnest money is then applied to the buyers’ closing costs or down payment. 

The Bottom Line: Over the past couple of years, the real estate market has been so hot that it’s not unusual for homes to go off-market in days. We are even seeing homes that need serious work breaking price records. It’s easy to feel pessimistic if you are a buyer. Don’t give up. Make sure you have the best Realtor as your wingman and know that the key to getting your offer accepted in a heated market is to present the easiest, stress-free scenario for a seller.

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Buy the Least Expensive Home in the Best Neighborhood

Imagine finding the home of your dreams for sale and it’s the most expensive home on the street. And, it’s in your price range. Are you about to score!? Be careful. Making an offer on the best house in the neighborhood may not be economical.

Why should you not be the one with the best house? It makes a lot more sense—financially, anyway—to buy one of the lesser homes in the neighborhood. Every improvement you make will add to its value and increase your equity—and you’ll have a pretty high ceiling here, figuratively speaking. When you buy the lesser home in the neighborhood, it becomes much easier for you to increase the value of your real estate investment.

Not every single home that is purchased will result in a profit – real estate, like any other investment, is a gamble. Buying a home is often the biggest investment you’ll ever make. So, regardless of everything, you still should look at it as that: an investment. Resale value should always stay top of mind. 

If you have the least expensive home in the neighborhood, the other homes will actually drive your home value up. But the opposite is also true. If you have the most expensive house, the other homes will drive your home value down. This is another reason why mid-range homes tend to have a higher price per square foot than the fancier homes down the street. 

If the market shifts, and it does about every 7 years, you may be stuck at the top of the market in your area. When times are tough, buyers will opt for a less expensive home in hopes of getting a better deal. 

Having a knowledgeable Realtor is so important.  They understand the importance of resale value while you search for your home. They have all the market information you need to make a good decision. If there aren’t any comps to support the high price tag it will be harder to get a bank loan (unless you have cash!) Your Realtor, if you have found a great one, will ask the listing agent where he or she based the listing price. Normally listing agents will list homes based on past sales in the immediate market area unless the sellers themselves set the list price.

The Bottom Line: Why let lesser valued homes in the neighborhood drag yours down? Buy the smallest house in the best neighborhood and let the neighbors’ values bring yours up. A low-end house can be upgraded to your own specifications to increase the value to the average of the area.

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Enhance Your Home’s Value Quickly and Inexpensively

If you are ready to sell, there are plenty of ways of increasing your home’s value that doesn’t require an extensive renovation project or a ton of money.

Your ultimate goal is to gain the maximum return on investment in the least amount of time. DIY projects can help to accomplish the look you want while staying within your budget. Whatever your circumstances are for renovating, here are a few cost-effective home improvement tips to increase the value of your home. 

1. PAINT

One of the most simple, cost-effective improvements of all is paint! Paint makes the walls in your home look brand new! It’s easy, affordable, and incredibly valuable. By painting over all the scuffs and nail holes on your walls, you’re going to make your entire house feel cleaner and newer instantly.

To maximize value, choose a light, neutral color. By going with a light color, you help the home appear larger. And by sticking with neutral tones, you help the home appeal to as many buyers as possible.  

2. REPLACE FIXTURES

Outdating lighting and plumbing fixtures can drag down the entire vibe of a home. But by replacing the old fixtures with either timeless or trendy ones, you breathe fresh life into the space. 

If you’re planning to sell in the very near future, trendy fixtures will probably get you the best bang for your buck. But if it will be a little while before you sell, and you don’t want to have to replace the fixtures again before listing your home, it’s probably best to stick with timeless fixtures that won’t instantly date themselves. 

Make sure your fixtures match the property in both style and quality. HIgh-end homes require more expensive lighting fixtures while mid-range homes can be updated with less expensive fixtures.

3. GET SMART

Smart home technology has become increasingly accessible over the past decade and is in high demand by buyers. Smart locks, security cameras, thermostats, and lighting all make your home more valuable, especially to tech-savvy buyers.

These systems can usually be installed without hiring a technician, so you won’t need to wait weeks for an installer to come out. Instead, you can boost your home’s value this weekend by installing these smart systems yourself. 

4. BOOST CURB APPEAL

In a world where first impressions are everything, the entrance to your home is a big deal. Not only is this how people will perceive your home when arriving in person, but it also sets the tone for your listing photos when buyers view your home online. 

Cleaning the front entrance, adding a fresh coat of paint to the front door, and sprucing up the landscaping in the front of the home all enhance your home’s perceived value without much time, money, or effort.

5. INCREASE ENERGY-EFFICIENCY

Buyers love energy-efficient homes. Many buyers are environmentally conscious and appreciate homes that work to conserve energy. And buyers are also aware of the cost savings that accompany energy-efficient homes. Buyers are usually willing to pay a little more for a home when they know they can save money on their utility bills month after month.

The Bottom Line: If you are considering increasing your home’s value so you can sell for top dollar in the near future, reach out to the best Realtor in your neighborhood.

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Title Problems Revisited

Every property has a history of owners.  That history is called an ownership chain, or more often, a title chain.  When a link in the chain has a problem, it’s called a title defect, or a cloud on title.

When purchasing a home, you may view title insurance as an unnecessary cost.  However, title insurance provides protection for both the seller and the buyer against title defects. Title insurance, as the name implies, insures against property title defects or ownership defects.  Some title problems may not become apparent for years. Others can hinder the sale of your home, and may even limit who you can sell your home to.

Here are some common issues that a title search mighty uncover:

PUBLIC RECORDS: Mistakes and errors happen but you do not want it affecting your home. The errors can be disastrous and cause you an undue financial burden to resolve. Simple clerical or filing errors could affect the deed or survey of your property.

UNKNOWN LIENS: Prior owners of your property may have left unpaid bills. And, even though the former debt is not your own, banks or other financing companies can place liens on your property for unpaid debts even after you have closed on the sale. This is an especially worrisome issue with distressed properties.

ILLEGAL DEEDS: While the chain of title on your property may appear perfectly sound, it’s possible that a prior deed was made by an undocumented immigrant, a minor, a person of unsound mind, or one who is reported single but in actuality married. These instances may affect the enforceability of prior deeds, affecting prior (and possibly present) ownership.

MISSING HEIRS: When a person dies, the ownership of their home may fall to their heirs or those named within their will. However, those heirs are sometimes missing or unknown at the time of death. Other times, family members may contest the will for their own property rights. These scenarios – which can happen long after you have purchased the property – may affect your rights to the property.

FORGERIES: Unfortunately, we don’t live in a completely honest world. Sometimes forged or fabricated documents that affect property ownership are filed within public records, obscuring the rightful ownership of the property. Once these forgeries come to light, your rights to your home may be in jeopardy.

UNDISCOVERED ENCUMBRANCES:  At the time that you purchase your home, you may not know that a third party holds a claim to all or part of your property – due to a former mortgage or lien, or non-financial claims, like restrictions or covenants limiting the use of your property.

UNKNOWN EASEMENTS: You may own your new home and its surrounding land, but an unknown easement may prohibit you from using it as you’d like or could allow government agencies, businesses, or other parties access to all or portions of your property. While usually non-financial issues, easements can still affect your right to enjoy your property.

BOUNDARY/SURVEY DISPUTES: You may have seen several surveys of your property prior to purchasing, however, other surveys may exist that show differing boundaries. Therefore, a neighbor or other party may be able to claim ownership of a portion of your property.

UNDISCOVERED WILL: When a property owner dies with no apparent will or heir, the state may sell his or her assets, including the home. When you purchase such a home, you assume your rights as the owner. However, even years later, the deceased owner’s will may come to light and your rights to the property may be seriously jeopardized.

The Bottom Line: The experts at Title First oversee and perform thousands of closings each year. When using Title First, you can sign confidently on the dotted line knowing that all details of your title transfer and closing are in proper order. We are here to answer any questions you may have about buying or selling a home, and our team will guide you through the entire process.

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Emotionally Detaching From Your Home to Sell

According to the National Association of Realtors, the average number of years people stay in their homes is anywhere from 10-20 years. Owners and their families end up having great and often life-changing events and memories that happen under their roof. Their home is the biggest investment made and they become attached emotionally.

Having buyers come in and walk through their home, opening closets, cabinets, and drawers, walking through the bedrooms, looking behind furniture, and then criticizing (!!!) their beloved home can be soul-crushing.

Thus, the first hurdle to overcome after having made the decision to sell is to let go emotionally. Time to start looking at it as a positive financial opportunity and become distant from all the aspects of the property where memories were created. It’s hard pulling hearts away from recalling the moments; the paint colors, the perfect carpeting picked, a child’s first bedroom, or a dining room that held so many family dinners. The secret is to acknowledge that selling the home is going to be stressful and emotional upfront and hopefully that will enable good decisions going forward.

Once personal items like pictures, knick-knacks, etc. are removed to begin staging which it won’t feel as much like “home”. A good Realtor will give great recommendations to help make the home more neutral – maybe painting or pulling carpet – all of which will make the home seem more like a product that needs to sell and help to remove emotion.

It’s common for a seller to overprice their home when they are emotionally attached. The price of the home should be based on the market and the comparable properties, not the value the owner, someone with memories, puts on the home. An experienced Realtor will establish the price.

If a low offer should come in, it’s best to look at it as good news! Someone loves the home enough to even make an offer. The Realtor will negotiate and learn what the seller likes and dislikes keeping the owner out of that process while simultaneously keeping emotions out of the equation.

The Bottom Line: Make sure you are truly ready to sell your home. Make a list of the pros and cons of why you want to move and evaluate. Have an experienced Realtor help you once you have made the decision and realize that sentimental value does not translate to monetary value so you will need help pricing your home accordingly. Keep your emotions in check, make a clean break, and put your energy and time into making your new house the home of your dreams!

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Do You Need A Realtor To Buy A House?

The answer is no. You could buy a home without using a Realtor, but why? Is your hesitation because you believe that you will be paying the Realtor fees? Typically, buyers don’t pay the commission-the sellers do. There are no legal requirements that you need to have a Realtor in order to buy a home unless it’s on a Federal Housing Administration foreclosure property. There really isn’t anything stopping anyone from buying a home on their own, but we offer you a few reasons why you should have someone on your side advising you through the process.

Sure, you can look through the many internet real estate listings, but a knowledgeable Realtor can cut through all the fat, plus have access to other sites, know the neighborhood comps, have contact with other agents in town with “pocket listings” and sometimes know the background (or the “skinny”) on a few homes. A Realtor is going to do all the dirty work and guide you through it all.  They are going to research the market trends and other important information that can be tedious. When almost everything is accessible online, it can be easy to adopt false confidence that encourages you to handle it all yourself.

The housing market is immense, there are literally thousands of options available and it can prove to be difficult to narrow down which homes are even worth looking at.  Your Realtor will have data about crime rates, education options, local businesses, commute times, zoning codes and a lot of other information that will influence your final decision.

Once you fall in love with a home, a skilled Realtor will have been through many homes and is trained to look for issues that might be hidden from you. Once the problem is identified it can be addressed and the Realtor can ask for it to be repaired.

Real estate agents are negotiation experts. If you buy a home without an agent, you’ll have to negotiate and decide how much to offer on your own. This may cause you to unknowingly overpay for your home – or lose out on the one you want. The Realtor will negotiate on your behalf with the seller and seller’s agent.

The vast knowledge of market conditions and comp sales coupled with the Realtor’s knowledge will help put together a competitive offer at the best possible price.  You will be given information on at current home conditions to find any issues that could be leveraged during negotiations. The Realtor knows how to navigate through the many documents plus be your voice when the negotiating begins.  If you end up with questions and concerns or are completely confused, your Realtor will be able to clarify all the clauses, contingencies and jargon-filled fine print as well as find hidden fees and conditions that many people tend to skim over.

The Bottom Line: Anyone can shop for a new home without a Realtor. Buying and selling a house is one of the largest financial transactions people make in their lifetime. Realtors earn their commission by making sure you know exactly what you are doing. They are helping you through the many pages of documents required on the transaction. They are with you during the inspection (pest, foundation, furnace, sewer, electrical, plumbing, etc), appraisal, and disclosure. It’s in your best interest to use the resources of a skilled Real Estate Agent.

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